7:00 p.m. eastern at politics and prose bookstore in washington for "race in america," a panel discussion about race relations in examining relations in the african-american community. urban radio network's washington bureau chief and author of "the presidency in black and white" moderates. other panelists include a correspondent and author of "fracture." princeton's center for african american studies chair, the president emeritus of bennett college for women. victoria christopher murray, author of "stand your ground." and university of baltimore school of law interim dean and author of "ghosts of jim crow."

watch live tuesday at 7:00 p.m. eastern on c-span two. >> for camping 2016, c-span continues on the road to the white house. ms. clinton: this is not a reality tv show. this is as real as it gets. mr. trump: we will make america great again. coverage of the presidential and vice presidential debates on c-span, the c-span radio app, and c-span.org. 26 is theptember first presidential debate live from after university. 4, viceay, october presidential candidates governor mike pence and senator tim kaine debate at longwood university in farmville, virginia. 9, watching to university in st. louis hosts the second presidential debate, leading up to third and final

debate, taking place at the university of nevada las vegas on october 19. by coverage of the presidential and vice presidential debate on c-span. at or live on the radio watch anytime on demand at c-span.org. now, a discussion on some of the house and senate races in the 2016 elections. from today's washington journal, this is about 45 minutes. joining us now is adam wollner with the national journal and is here to talk about congressional races to watch this year and whether or not republicans can hang onto to the majority in the house and the senate. thank you so much for joining us. guest: thanks for having me. host: how many seats are up for grabs this cycle? when we look on the senate side, the democrats, assuming hillary clinton wins the white house, they would need 4 seats to take back control of

the upper chamber. democrats think is doable. on the house side, the republicans have a 30 seat majority in the house. even with the way we are seeing hillary clinton is expanding her leave a little bit. that will be a big hurdle for democrats to pick up that many seeds in one election. -- think they can make a sizable dent. seats theate side, 4 democrats need to take control away from the republicans, there is roughly 10 seats right now that are really in play. on the house side, there are not a lot more in play. there are really very few competitive districts. maybe two dozen maximum that are truly competitive races.

up,way things are shaping if you had to place odds, democrats would get slight odds to take back the senate while republicans should hold the house. host: on the senate side, you mentioned there are 10 seats in play. where those races? from the are working top with the seats most likely to flip. two of them are republican held in states that usually go blue. there was illinois and wisconsin. even the optimistic republicans say that will be really tough for them to hold onto those seats. those are seats that are starting to and more to the democratic side of the aisle. innwhile, a few other states the next year are indiana, pennsylvania, new hampshire, and even throw in north carolina. these are seats that are republican held. they will be tighter and more

competitive races than illinois and wisconsin where democrats have a good opportunity to pick up seats. probably the best opportunity for republicans to gain seats, you need to go to nevada where the senate minority leader harry reid is retiring. we want to let our viewers know they can join in the conversation at their questions or comments. here are the lines to call. we are also reading your dates and you can send us a message. your tweets.ding so much attention this election cycle has been focused on the top of the ticket on the battle but donald trump and hillary clinton. potentialant is the election this year in affecting the races further down the ballot?

guest: in presidential years, the top of the ticket always has a big impact because there are ine voters that have presidential years as opposed to midterm years. when you begin these new voters are voting for hillary clinton and donald trump, in the past, there was a good chance they would vote for that party down the ticket but there has been a decline in split ticket voting. that can certainly change in 2016 when you have a candidate like donald trump. democrats, even at the democratic convention, we are the speakers when they were making a push to republicans saying we know donald trump is by no means your traditional nominee. feel free to vote for hillary clinton. they don't feel comfortable with donald trump. many of the republicans in tough senate races will be able to run a few points ahead of donald trump is voters will distinguish

between rob portman the republican senator in ohio and donald trump. they are two different types of republicans but how far ahead can they run? with the margin than the states, that will have a huge impact determine which pay the senate races go. recently this chart was published that donald trump may be dragging down republican senate candidates and it shows how the donald trump declining poll numbers have impacted gop senate candidates in several contested states. candidates'polling numbers have declined as well as donald trump's numbers. he is down nine points in new hampshire. many down seven points in illinois. 4nnsylvania, both her down

and so on down the line. the only state in which a senate candidate has seen a bond in august is in ohio. how have republican candidates been trying to dance around the donald trump issue? are they coming out in support of him or are they holding back? been a tricky issue for many of these republican senate candidates to navigate. on the one hand, you cannot distance yourself from donald trump completely. outside of mark kirk in illinois was probably the most vulnerable senator running in a blue stake of a most senators are running competitive races and they will not say i will disavow donald trump completely. the same time, they have to make sure the distance themselves for controversial comments that donald trump is making so they can win over some

of the more republican leaning independents that they will need -- in their column. it has been a tricky balance and they have another 80 days to go. the democratic opponents will try to link to donald trump every step of the way. host: let's go to the phone lines, the democratic line. good morning. there are a couple of points i want to make about the united states election. all, i am a democrat and we love to call the republicans that they believe in certain things. of white people in this country are republicans and they believe in taking people's rights. this country will be different theou did not have african-american population to balance out the election in certain states.

the hispanics don't make really a difference. i will give you a statistic. of the hispanics in the united states live in 10 states, texas and california and they don't have an affect them a lot of the southern states except out west. democrats, i am a black man, they say they want immigration reform. we are not stupid. they are taking from us. get your point. any thoughts on how minority groups might impact some of the congressional races? this is an issue where the top of the ticket comes into play. donald trump is incredibly unpopular in certain ethnic groups. that will make a difference in these battleground states where minority voters play a big role like florida.

that could really hurt him. on the senate level, marco is now running for reelection. he has a good relationship with many cuban voters. he willne area where outrun donald trump and hold onto his senate seat even as -- even if hillary clinton defeats donald trump. what about hillary clinton? how are democrats in key swing states looking to her to help or hurt their cause? guest: even if she is leaving in states where there are key senate races, and the democratic senate candidates have not been unwilling to tie themselves to her. her on favorability ratings up the high as well. there is the trustworthy issue. you set up play out in the new hampshire senate race which was a tight race between kelly

and the governor of new hampshire running against her. interview ad in an few different times whether she thought hillary clinton was honest and trustworthy and she was not able to give a straight answer and eventually she said yes. hillary clinton has plenty of negatives of her own that democratic candidates have to deal with. host: here's a clip of that interview on cnn. >> do you think she is honest and trustworthy? >> i support hillary clinton for the presidency because of her experience and record what you demonstrated she is qualified to hold the job. >> do you think she is honest? >> she has a critical plan among others for making college more affordable. >> do you think she is trustworthy? >> i think she has demonstrated a commitment to something beyond herself, bigger than herself. host: let's turn to the phone

lines. your opinion on the down ballot elections, brian from washington, d.c., independent line. caller: how are you doing? i wonder if you could address whether or not republicans would be having such a majority if there was not this extreme gerrymandering going on? can you address the rules and how gerrymandering actually affects some of these districts? they don't look like they represent. how do people go about changing those? issue facings an democrats this year which could wind up looking good if hillary clinton gets elected. posy -- ahave a pretty positive effect. a lot of districts are drawn in a way that makes them pretty

uncompetitive. there is really only a couple of dozen house prices that are truly competitive. states, the redistricting process is controlled by the party in power in that state and republicans have success in recent years at the state winning governorship's and state houses and it's those republicans who are in charge of drawing the districts. on 2020s are focused and terms of taking over the house. death when they think they can take back control of some of these state houses and they will be in charge of drawing some of the districts parent --. have a smallys percentage of all these house seats that will be competitive every two years. which house seats do you think of the most in play? there are quite a few. , the 10th district,

which is northern district. in colorado, colorado's six , a spanish speaking republican lawmaker. ad he saysnteresting stand up to donald trump and hillary clinton. i think a lot of these races suburban districts where republicans may have a slight advantage, but donald trump has struggled among white, college educated voters. in 2012, had them. those will be in key battleground states. it will be suburban districts will be the one to watch this fall. host: the democratic line, victor. go ahead. caller: good morning.

aboutyou all please see not publishing the opinion polls ? they do in fact -- affect elections. i know people who have voted because of them. and i know people who did not go to vote because they thought they would lose. my comment is that the american people have got to wake up and do something about this mass. the most effective way i can defeatf is they ought to every single incumbent. but they need to do more than that. over, we election is need to come together and find a way how we can make our elections more competitive and

more equal for everybody. host: we hear you. to his point, about the polls, that is an issue for both sides as we get to november. there is a disparity between hillary clinton and donald trump. many republicans may stay away. and for hillary clinton, democrats are up so much, why should i show up because she already has it in the back. bag.n the b still keysteve -- house races. host: are the parties trying to put that message out yet? the sure you don't forget other election at stake here? guest: absolutely.

they are holding rallies in some of these battleground states. there are some other important races that you guys should vote for when you go to the polls. phillip in washington, good morning. trump is a bit confusing to me. he has run as antiestablishment but he seems to swing back and forth in his support of his own party. how will could predict he be greeted by the congress? will the republicans were with him or do you think he may be depending more on democrats? he certainly has burned a bridgesidges with -- with republican leaders. trump were held

to pull off an upset he would have a lot of work to do to repair his relationships, i think it is good if he ultimately won the white house he would come around to the fact them.e would work with i'm getting very disillusioned as a democrat. i supported bernie sanders, and they said they wanted to push hillary to hope that progressives are elected to we have alan grayson a wonderful progressive, he is well known nationally in florida. he is running against a so-called other democrats, who used to be republican, pat murphy. i received in the mail a letter from pat murphy saying obama and brighton have endorsed him. harry reid and that democratic

party have tossed a good man under the bus. hillary says the democratic party will help the progress -- get progressives elected she lied again. requests forf donations from the party. in 2013, i was getting letters from a group called ready for hillary, this super pac. they wanted money every week. some in the already were angry because she continue this fundraising right up to the midterm election, which took people who are running for congress. i don't trust or believe her. host: will you vote in november? i think she might be gone. you're getting into that

florida senate race a little bit. also when it comes to these leaders on both sides of the aisle their foremost concern is electability, who can win this race. patrick murphy and ellis -- alan grayson. both would face an uphill battle against marco rubio. polling that has been going -- patrick murphy puts up a better fight than alan grayson. has some bags that he would have to bring along and it would make it tough for him to win florida. i joe biden might get behind put up murphy, he would the best fight against marco rubio. host: florida has yet to hold its primary. guest: florida still has to hold

a primary election. patrick murphy is a pretty heavy favorite in that race. from northel carolina on the republican mind. caller: the main point i want to to make is between the two candidates i don't see the american people winning. hillary clinton does have some trust issues. i have been following your since whitewater, benghazi, etc.. i feel there is a trust issue there. on the other side, i look to trump and he can be very insulting. is this the kind of guy i want to represent our country? yes he recently apologized for several things, but what is the real trump? i just see the american people winning with either of these candidates. i think that sentiment is felt

from a lot of people. i don't know if it is majority but a lot of people feel this way. , her planmrs. clinton talks about she will increase on the wealthy. but generally when i see id. that, there increase socialism and taxes and increase the military. host: that's michael and north carolina. let's talk a little bit about that istion in arizona going on, john mccain versus and kirkpatrick. guest: it's a pretty interesting state. it's solidly in the republican column every election. it is becoming more of a battleground state on the presidential side with donald trump at the top of the ticket. recent polls have shown trump and clinton running neck and neck there. that will have a pretty big

impact on the senate race. maybe one of the more tougher reelection campaigns of his career. one thing that mccain is banking , voters in arizona now john mccain, they have seen him in action for a long time. they can distinguish between mccain and trump. that race has become a lot more competitive. that race becomes one that is competitive, that increases the democrats out of retaking the senate seat. representative ann kirkpatrick from arizona at. tojohn mccain's pledge

support donald trump 50 times. never been a big fan of john mccain. i hate the way our veterans have been treated by john. i like people who were not dust captured.n >> i said i support john mccain. judgeshe got to pick her , nothing you can do, folks. the second amendment people, maybe there is good i don't know. >> are you comfortable with donald trump possibly having control of the arsenal? if i change my mind i will let you know. >> the only thing that has changed is john mccain. >> i'm ann kirkpatrick and i approve this message. a little bit about

this, is this something you will see from other democratic challengers? guest: these are the types of ads that republican senators will be facing now through november. trump as aort donald nominee? -- even the language you hear donald -- john mccain of ads,ese are the type probably the most effective in some of these battleground states good for those who don't for donald trump, or voted john mccain, seeing themselves supporting so like donald trump. democrats hope that will change our minds. ambroise atlanta,

maryland. by and large most of the florida is not an ardent supporter. how are you going to blame hillary clinton for not --?orting chris [indiscernible] knows thee media truth about hillary,

intoecision to go [indiscernible] i am african-american. [indiscernible] host: that's ambroise from maryland. daniel will be next from louisville, kentucky calling on the republican line. go ahead. please call the a couplea primary vote months ago, were days before that vote the polls were saying bernie sanders was running

neck and bernie sanders was rung neck and neck with hillary, but hillary was running slightly ahead. but hillary got almost a million votes and bernie sanders only got just over a half a million votes. forward totle bit where the brexit vote u.s. polls kept telling us that the state vote was running slightly ahead of the leave though. but yet believe oh one by over one million votes -- but yet the leave float one by over a million votes. the polling actually has been pretty reliable.

and primary polling is different from general election polling. rather than looking at individual polls the best thing to do is look at the aggregate. ,ooking right now at the polls some polls may have her up by double-digit, some may only have her up by single digits. a lot can change between now and november. that should be reason to have some skepticism on some of the polls. the point has been pretty good so far. host: did any of the down ballot races receive a bump or change momentum after the party's convention? guest: it's getting an overall broader trend that democrats that generally gained a little

bit. there isn't as much polling and senate -- in senate and especially house races. conventions, you saw a lot of candidates experienced a slight bump. host: here's a story that ran in the l.a. times that says republicans are being forced to spend resources. how is that outside money influencing some of these elections? the massive spending advantage that hillary clinton because one like you mentioned a lot of these areitional outside groups

almost a lost cause at this point. donald trump just recently launched his tv ad. the koch brothers are focusing their efforts on these key senate races. that will give these republican senators a boost. clinton, -- and hillary clinton's -- some will want to run on her coat hill -- on her heels as well. out completely. jason from homestead, florida. guest: good morning. about is aalk

democrat how the party is -- as how they areerican overlooking african-americans to support the different elections , donald trump is right. i'm a democrat on paper, but in how do weg is continue to move forward. i am supporting -- and supporting the democrats when bill clinton was in the white policies wenttion to compare those as well. but republicans are trying to change it now, i feel for myself , i most likely will vote for donald trump for presidency, because something has to give. there is no way for for the economic community to move

forward with the democratic party. guest: i think that's weeks to more voting in 2016 only half because is not the typical republican nominee. he has high on favorability ratings. on the flipside a lot of voters are very unhappy with hillary clinton. she also has very high on they justty ratings, don't want to change things up little bit. donald trump may be a more appealing option to them. they may want to see a different kind of president in the white house. host: earl on the republican line calling from prewar, north carolina. good morning.

caller: i would like to make a to thent in regard republican conservatives and independents. conservativefloat or republican than you are abdicating our future to left-wing spree -- supreme court. if hillary becomes the next president, the supreme court will be stacked. it will be devastating to the country. please think about your vote , and think about if you don't vote you are still voting for hillary. thanks. host: let's hear now from james who lives in providence, rhode island, on the democratic line. what you're saying earlier that the republicans will be spending more time and resources defending their

association with. that what are the chances that republicans will keep the seats? again, it depends on race by race. you look at some of these key senate races, the more competitive they are, in ohio trump is actually two points away from hillary clinton. in pennsylvania, it's a different story where donald trump is down as much as 10 points. pat's program with stronger the 10 pointt advantage that hillary clinton has over trump is too much for someone like pat toomey to overcome. even if donald trump can't win those, they are hoping he can keep it close and not. host: do you have any sense yet

on how t.r. knight -- turn out can affect the race? if people stay home is it because because they don't want to vote for hillary clinton? it's too early to say at this point. a lot of the get out the vote efforts are going to get away -- underway after labor day. you will see some people casting their ballots. it will be an issue for both sides, on the democratic side, sure, she has a comfortable lead. republicans, even if it doesn't look like donald trump as much as a chance, there are

still a lot of other senate and .ouse race is it's interesting to see how they direct their get out the vote effort this fall. host: toledo, ohio on the independent line. caller: high, i'm an independent. i will support rob portman. but the race i am most interested in and that of wisconsin. i think ron johnson is probably the dutch person -- is the person. he seems to be the right guy that says all the right stuff. in wisconsin he seems to care and be the guy.

it's disappointing to hear he is in such a tight race. we have ron johnson as the second-most vulnerable senator of for reelection. wisconsin, while it goes red in off years, he won his seat in 2010. now, ron johnson has a formidable opponent in rest feingold. feingold seems to have the advantage. host: louisiana on the democratic line. go ahead. caller: good morning. we got in to congress,

how did they get there? party, debating president obama. just one of long -- them like donald trump said all these things until he got the people's attention. host: that's many from new orleans, louisiana. let's turn to a battleground state, jacksonville, florida. what do you think? thinking about this election and how telling it has been sent donald trump has been on it. who isly lets you know

thinking about party versus country. i have gotten so much respect who are ofpublicans value to their party but are more aligned with their country. --y know that donald trump about the supreme court saying, that's really important. i am a democrat and a christian. seems like in most cases a democrat has more christian dohts than the conservatives . to talk about love and caring and being welcoming to all people. , i'mthe supreme court thinking we do need a democrat the wayate, because they thought the judge that died, scalia -- i saw his

decisions. i saw what the court was like read i decided corporations 90% of the time when the people go to the corporations it was for the co-op -- corporations. host: we hear you this morning. your thoughts? guest: the supreme court has been a big issue in this campaign and the number one argument from republican leaders to skeptical republican voters. we know you don't agree with donald trump and everything, but we have this opening in the supreme court with the chance that more openings will come up over the next four years. would you rather have donald trump picking nose or hillary clinton? not agree withl you hillary clinton picks. that's an argument we hear a lot about.

virginia beach, virginia on the independent line. go ahead. caller: i'm not really in independent. i vote for people not a party. that votes for a party is throwing away their vote. i can't believe that donald trump has the guts to call --ebody ugly, to talk about to talk about hillary being stupid. she has more brains in her little finger than he has in common sense. host: we have time for one more color with our guest. gabriel, republican from fort lauderdale, florida. what do you say? caller: very good morning. in my opinion, i commend donald

-- there are -- i wish the republican party can havee, let's have, let's pants. --ill vote for pants and pence. there are some candidates that are keeping a distance to the donald trump because they know he becomes a liability against them, against the congress. if they don't keep the donaldance and they give

trump the blind support we will lose big. i am very concerned because i believe that should be both parties should have a balance of power and right now, it can be a big defeat against republicans because donald trump, i don't support at all. thought?al guest: some republicans may be encouraged to answer like that. i may not like him but i will still voting for a republican. will be the most interesting thing to watch over the next several weeks. how the senate candidates navigate their ties to donald trump. they don't want to risk losing some more of their independent constituents. host:

announcer: c-span's washington journal live with policy issues that impact you. we take a look at the presidential candidate positions on foreign policy. first, center for american progress on secretary clinton's foreign-policy agenda. then they foreign-policy advisor for the trump residential campaign. -- presidential campaign. live at seven caucasian on sunday morning. join the discussion. announcer: on newsmakers, roger stone of -- a longtime friend of donald trump, talks about trump's campaign strategy. newsmakers sunday at 10:00 a.m. and 6:00 p.m. eastern on c-span.

announcer: the tv is live at 7:00 a.m. eastern. a panel discussion with authors and educators about race examining the relationship between the police and the african-american community. washington networks bureau april ryan moderates the discussion. read --nclude joy and joy ann reid. eddie claude junior and julianne malveaux. andorino christopher murray f michael higginbotham.

watch live tuesday at 7:00 p.m. eastern on c-span 2. announcer: now i discussion on the current state of the u.s. mortgage servicing market. the rules governing home loan lenders in the way to improve efficiency and competitiveness. the urban institute held this form on tuesday. it is one hour and 30 minutes. >> we are thankful your here this evening as well as is great , esteemed panel. my name is faith schwartz, i'm am presenting core logic tonight. those types of information to inform their insight. tonight is a collaboration we

have had with the urban institute for going on for years. we are pleased to be a cosponsor of this event with the urban institute. thank you so much for being here. tonight it will talk about mortgage servicing. i bet you knew much about mortgage servicing seven or eight years ago. high-margin business. financial crisis. fast-forward and we have a lot to talk about it mortgage servicing, including the model, the alignment of interest, the cost of servicing, origination, access to credit. you will hear from experts across the board in the financial sector in both the public and private sectors.

let's introduced briefly each panelist and i laughed then the speak for about 10 minutes. then we will open it up for questions and answers for this group. many of you know these panelist well. thank you for being here. first we have ed marco to my left. he is a senior fellow at the milton institute. he works on housing policy and financial institution regulation. he is best known for his role as acting director of the federal finance housing agency, where he led the goc as a regulator from 2009 to 2014. welcome ed. we have lori marciano. she is the program manager for markets and regulation for the consumer financial protection bureau. lori was also the director of of the homeownership preservation program and an architect of the affordable program and treasury. she has had many years in the

industry. she has done a great job. next we have michael stegman, a fellow at the policy center for finance. he works on housing finance. and michael was a senior policy advisor to the white house. before that senior adviser to the office of the treasury, secretary of the treasury. we are delighted to have michael with us tonight as well. next we have laurie goodman. she needs no introduction in this crowd. codirector of the urban institute housing finance policy center, along with elana mccarter. lori is a voracious researcher and publisher. over 200 articles and journals and of the five books co-authored and authored. she is well known among policymakers and the public about important issues on

housing finance. last we have ragu, senior vice president for housing policy and capital markets at wells fargo. he was also managing the role of regulation inside of wells fargo. dodd frank, qm, atr. he helped start a platform and wells fargo for an online banking platform. welcome. >> thank you, faith. thank you for taking time out to be here. it's really an important topic. important for consumers. for the many participants in this ecosystem of housing finance. what i will do is focus on mortgage servicing compensation. something that remarkably has

not changed in decades as the servicing world itself has undergone profound changes. let me start with why this is an issue. most of my remarks will be in the context of the agency market, the freddie mac market. a lot of it is also generalized for the private market and so forth. for simplicity. since 1980's, servicing compensation has been a minimum servicing fee required by fannie and freddie of 25 basis points. there is broad consensus this 25 basis point minimum servicing fee results in compensation that far exceeds the actual cost of servicing and performing loans. yet it is less than needed for nonperforming loans. as we are about to see it becomes even more pronounced in

that case. i only have one chart. let's turn to it now. thanks a mortgage bankers association. they published this chart a few weeks ago. what this chart shows is the fully loaded servicing costs for both reforming and nonperforming loans. we do this from 2008 to 2015. there are two things that stand out. what is the cost of servicing and performing loans is much less than the cost of servicing a non-performing one. the other is they are growing. they point out two things about this. comparing 2008 to 2015. in 2008, it was eight times more expensive to service a nonperforming loan. now it is 13 times more. the cost of both of gone up. this in flexibility in servicing left fannie and freddie scrambling to properly beef up operations and make the effort, the direct hands-on effort with

consumers who homeowners who are having trouble with the mortgages. we ended up with a lot of additional compensation being paid out in the form of compensation they got layered on. that was done in the midst of the crisis. something that ought to be addressed. another critical reason we need to address this issue is mortgage servicing rights. this current compensation system we get treats what is called mortgaging service right. he represents the future cash flow when a loan is sold to fannie or freddie. this future cash flow last as long as the mortgage does, so it economically acts like an interest-only strip. borrowers prepay and suddenly that loan goes away and there is

no compensation coming in any interest rates go in the other direction, the opposite happens. so, an msr is difficult to manage, difficult to hedge, and requires a great deal of capital to hold on your balance sheet. one problem is it lends to financial instability for the holders. the other is because of these characteristics it tends to limit holders to larger, more sophisticated holders. making it smaller for midsized servicers to compete. we should want more participation and compensation that's competition by smaller, midsized players. we should want less systemic risk. i think we should fix this. as regulators, we should be focusing on how the market is working. do they allow for entry and exit? is there liquidity in the

market? the valley of asset or activity transparent or easily assessed? the answer is largely no. let's fix it. what we should be looking for is a model that allows for responsive servicing for homeowners, efficient litigation with appropriate high touch to help troubled homeowners, and sufficient compensation to achieve that outcome. we have to be seeking reduced volatility and increased competition. back in 2011 when i was acting director of fha, we try to tackle this issue. we started a discussion with market participants about where and how to change marketing compensation. the industry had been engaging in these debates for a long time

at the start of 2011 we announced we were going to systematically explore possible new compensation structures. they wanted to engage market participants in the process. we wanted better for consumers and better for fannie and freddie. initially proposed four general approaches to how this might be done. we went to industry conferences and tried to engage with participants in working this out. in september of 2011 be published a more formal proposal. a formal public comment on two general options. one was to reduce the minimum servicing fee in order to reduce the msr, and also create a reserve fund that would be there to help pay for the higher costs of not performing loan servicing. the other was to go in a different direction and create a

fee-for-service structure. the feedback we got in 2011 was, well, we don't have consensus. there was general agreement on a couple of things. there was general agreement to most people the system is not ideal, even if some did not want to change it. moreover, the other set of comments were this isn't really the right time to deal with this. the mortgage market is really fragile. this is 2011. servicers had their hands full trying to keep up with the evolving loan modification programs, what fannie and freddie were doing and so forth. really importantly we didn't know about -- what the rules are requirements for going to look like going forward. it was hard to reject compensation when you had an evolving set of service

requirements. speaking for myself it was always something of was convinced needed to be addressed once the timing was right. frankly i think it is right now to begin re-examining this issue and reconsidering it. i think there are important changes since 2011 to take note of. first, as we are about the year from lori, we have much better ideas about what those servicing rules are. the cfpb has published servicing standards and additions to it. we will hear about that in a moment. these rules provide a pretty detailed prescription about what is required of servicers with regard to nonperforming loans. we have much better information now. other key changes are we now have an evolving credit. transfer market back in 2011 it

was all the fannie and freddie. this was about aligning between the servicer and the interest as fannie and freddie as a creditor. private capital holding a meaningful credit loss exposure. they are an important part of this discussion now. they are the ones in a loss position. how servicing is done, how it is compensating off to tie into credit transfers, including how pricing and crt works. that will be part of the discussion this time around. we have moved on and making progress towards greater low-level disclosures. this means investors, including these credit investors will have better ideas about news is servicing and how things are being done. we have made a lot of improvement and advancement with regard to warrant. i won't get into the technical part, but the msr serves as protection collateral for fannie an